What is the green tax for cars after 15 years in India?
Government mandates that owners of commercial cars pay a Green Tax that can be between 10% and 25% of their unpaid road tax obligations. For instance, if their road tax is INR 6000, the highest Green Tax would be INR 1500. Private vehicles may have to pay up to 50% of their required road taxes as green taxes.
The green tax is a levy imposed by the Indian government on vehicles based on their age, type, and level of emissions. The tax is meant to reduce environmental pollution caused by vehicular emissions and promote cleaner, greener modes of transportation.
The maximum age for petrol-related vehicles remains the same (15 years). Diesel-fueled cars have a life cap of 10 years. Any car older than this found on Delhi roads will be fined Rs. 10,000.
All private vehicles must go for re-registeration to their RTOs after completing 15 years, and undergo a fitness test. If they clear the test, registration will be renewed for another five years and the same process will have to be repeated every five years.
In case of new cars and other motor vehicles, the rate of life tax will be 20% if the cost of the vehicle exceeds ₹20 lakh. For new cars and other new motor vehicles, whose costs ranges between ₹10 lakh and ₹20 lakh, the rate of life tax will be 18%, and for vehicles costing ₹5 lakh-₹10 lakh, it will be 13%.
The 2021 vehicle scrappage policy mandates the deregistration of private cars over 20 years old and commercial vehicles over 15 years old. Vehicles that pass the fitness test can be re-registered, while those that fail must be scrapped.
- Step 1: Go to the Vahan website and log in using your credentials.
- Step 2: Enter your vehicle registration information on the website.
- Step 3: Click on the 'Pay Your Tax' option and enter your phone number.
- Step 4: Finish the OTP verification, and click on your appropriate tax option.
Commercial and private vehicles over 15 years old shall be tested for fitness to renew the registration. If the vehicle is found unfit, the owner has the option to repair it and apply for the re-test. If the vehicle fails the fitness test, it shall be declared an End-of-Life Vehicle (ELV) and eligible for scrapping.
The renewal must be ideally done 60 days before the expiry of 15 years. After the first 15 years, you can renew your car's registration for five years, depending on its condition. But do not drive your car with a lapsed registration, as it may draw penalties and get you in legal trouble.
As per the Central Motor Vehicle Rules, all private vehicles are to re-register the vehicle after 15 years for every 5 years, for as long as it is considered road worthy by the department.
Is a 15 year old car considered old?
How old does a car have to be to be a classic? The starting classic car age range can generally be anywhere from a minimum of 10 to 25 years old, but there's no agreed-upon minimum age that categorizes a car as a classic.
So basically at the end of 15 years you need to renew your registration and pay the taxes. For renewing the registration the vehicle has to go through a fitness test and a fitness certificate has to be issued. Once that is done,you can approach the RTO to renew the registration and tax.
According to the Central Motor Vehicle Rules, private vehicles need to be re-registered after 15 years and commercial vehicles after 20 years for every 5 years. These vehicles can then ply on Indian roads until they fail the fitness test.
1. Whether you are a business owner or a salaried individual, show that you are using the car for business purposes and not for personal use. 2. Include car loan interest as a business expense when filing your Income tax return.
To get a tax rebate on car loan, you have to list the car loan interest paid as a business expense. For this, you can request your lender to issue an interest certificate indicating the amount paid as interest on the car loan to enjoy tax savings.
GST on cars in India is applicable across multiple slab rates of 5%, 12%, 18% and 28%. The most relevant GST rate on cars is 28% that applies to motor vehicles including those for personal as well as commercial use.
Renewing Registration Certificate in Punjab
According to the Central Motor Vehicles Rules, 1989, a motor vehicle registration is valid for 15 years, after which it must be renewed for continuing usage.
- Original RC.
- Original NOC and 2 nos of form 28.
- Valid insurance.
- Valid Pollution certificate.
- Address proof.
- copy of purchase invoice.
- 1 no of form 20.
- 2 nos nos. of form 27.
From April 1, it will cost ₹5,000 to renew the registration of all 15-year-old cars, compared with the current rate of ₹600. For two-wheelers, the fee will be ₹1,000 instead of ₹300. For imported cars, the cost will be ₹40,000 instead of ₹15,000.
An environmental tax, ecotax (short for ecological taxation), or green tax is a tax levied on activities which are considered to be harmful to the environment and is intended to promote environmentally friendly activities via economic incentives. One notable example is a carbon tax.
How much green tax for a car in Mumbai?
| Vehicle Category(age criteria) | Green Tax Applicable |
|---|---|
| Diesel vehicles(5 yrs) | Rs 3500/- |
| Petrol vehicles(5 yrs) | Rs 3000/- |
| Autorickshaws(5 yrs) | Rs 750/- |
| Light good vehicles(5 yrs) | Rs 2500/- |
Owners of bikes and cars older than 15 years have to pay an annual Green Tax of Rs 1,000 and Rs 5,000, respectively. Transport vehicles, on the other hand, have to pay a Green Tax of Rs 7,000 annually after they are more than 7 years old.
The state policy is in line with the Vehicle Scrapping policy of the Ministry of Road Transport and Highways. Transport vehicles can be scrapped up to eight years while non-transport vehicles can be scrapped up to 15 years from the date of registration.
An individual can own "n" number of motor vehicles. He should only take care that the law enforcement agencies should not reach his or house to hunt for tax evasion or disproportionate assets. That is pay all taxes and abide by the law of the land and then own as many motor vehicles.
Petrol and CNG vehicles with an age greater than 15 years can also be retrofitted if they have re-registration and a certificate of fitness. However, commercial vehicles are not allowed for retrofitment after 15 years, irrespective of their fuel type, according to the Delhi government.
